Property Control System Manual (PCS)

Effective: 6/9/1986

Revised: 1/9/2008

PCS 1002–01: Surplus Property—General

Purpose

To explain how Surplus Property conducts business

Source

Property Control

Background

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Objectives

The objectives of Surplus Property are to:

1. facilitate the reuse of excess departmental property
2. obtain operational proceeds from the sale of ASU surplus property

   and

3. provide temporary warehouse storage for university departments.

These objectives are accomplished by:

1. maintaining fair and impartial sale and disposal methods, protecting property against theft or misappropriations, and being accountable for methods and results
2. preserving the value of excess and surplus property by proper protection and storage

   and

3. maximizing the return on scrap by proper sorting and marketing.

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Organization and Responsibility

Surplus Property is organized under the Office of the Associate Vice President for  University Business Services and reports to the assistant director of Capital Asset Management . Surplus Property is responsible for the reassignment of departmental excess property, disposal of ASU surplus property and scrap, and the recycling of materials, as well as management of temporary warehouse storage.

Policy

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Disposal and Sale of ASU Surplus Property

All surplus property is transferred to Surplus Property unless a trade-in is made by the department. When a department has surplus property, the property is transferred to the Surplus Property Warehouse by university movers, department personnel, or Surplus Property movers.

Note:

: The releasing department is required to  securely wipe all computer hard drives and other data-containing medium before transferring them to Surplus Property.  However, if the releasing department fails to do this, Surplus Property computer staff will ensure that the formatting and wiping of the hard drive happens.

After property is transferred to the Surplus Property warehouse, it is available to university departments for a minimum of  three  calendar days before being made available to the public via retail sales and auction.  At the discretion of the Surplus Property manager, some items may not be held for three days. Once property is received at Surplus Property and inventoried, it becomes the property of Surplus Property.

If departments choose the Interdepartmental Sales Rights (ISR) box on the Disposal Request, the proceeds from the sale of property costing more than $2,000 per unit are distributed to the transferring department in accordance with the Surplus Property Sales Rebate Schedule at the end of this policy.

If after three calendar days property has not been reassigned to another department, it is declared surplus property and made available for sale to the general public by means of retail sales and auction. If ISR is reserved and the property is not sold within 30 days, Surplus Property will contact the department to request a better asking price. If Surplus Property and the department cannot agree upon a reasonable asking price, Surplus Property retains the option of returning the property to the department.

Sales of scrap (metals, aluminum, copper, etc.) are offered to the general public via auction.

External sales of surplus property by department personnel must be coordinated with Surplus Property per the procedures outlined in PCS 1002–09. The distribution of proceeds from the sale of property will be in accordance with the rebate chart at the end of this policy.

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Donations by Surplus Property

The university cannot donate property to any organization. However, the manager of Surplus Property may discount the usual selling price of certain designated surplus items by up to 50 per cent for sale to tax-exempt organizations that further the university’s mission of education, research, and service. Organizations determined by the Internal Revenue Service to be tax-exempt that further the university’s mission of education, research, and service may make a request of the Surplus Property manager for receipt of surplus property at a discounted price. A university department interested in this type of exchange may address their request with the manager of Surplus Property stating the property involved and the receiving tax-exempt organization(s). The nonmonetary consideration received by the university from the receiving organization shall be documented as part of the transaction record.

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Sale of ASU Surplus Vehicles

Motor and mobile vehicles will be available for sale to the general public immediately after vehicles are inventoried by Surplus Property. Vehicles are sold to the public via auction. Payment for all auction items is due by 3 p.m. the day the auction closes. Acceptable payment methods on all auctions include cash, cashier’s check, money order, VISA, or MasterCard. All purchased property must be removed from the Surplus Property warehouse by 3 p.m. the following business day unless other arrangements are made with the Surplus Property manager.

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Storage of Property

Storage of property at the Surplus Property Warehouse may not exceed one year unless other arrangements are made with the Surplus Property manager (see PCS 1002–07, “Temporary Warehouse Storage”).

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Surplus Property Arising from Remodeling Projects

For remodeling projects, but before issuance of the Notice to Contractors of Intent to Receive Bids, the Department of Facilities Management project manager sets up an area walk-through consisting of a representative from:

1. the Department of Facilities Management (arrangements made through the assistant director for crafts)

   and

2. Surplus Property (arrangements made through the Surplus Property manager).

For existing material that will become available during the renovation:

1. the Department of Facilities Management has first right to the material, if it can be used by the department for campus projects

   and

2. Surplus Property has next right to the material, if it has economic sales value.

For Surplus Property to determine economic sales value, the Department of Facilities Management must provide estimated charges in writing to the department for any time-consuming disassembling required for items tentatively selected by the department. Since the Department of Facilities Management has first right to the material and hence gains an economic benefit, only disassembly that is time-consuming is charged to Surplus Property.

Material that is to go to the Department of Facilities Management or to Surplus Property is noted in writing and, if an outside contractor is to do the work, is listed in the bid documents.

Material not chosen by either the Department of Facilities Management or Surplus Property is disposed of by the Department of Facilities Management, or by the general contractor if the work is being done by an outside contractor.

The Department of Facilities Management has responsibility, before start of construction, for disassembling and transporting the materials to:

1. a storage area for material to be kept by the Department of Facilities Management

   and

2. the Surplus Property Warehouse for material to be sold by Surplus Property.

D

Surplus Property Sales Rebate Schedule
Sales Price Greater Than But Not More Than Rebate to Department is Of the Amount More Than $ 0 $ 2,000 $ 0% $ 2,001 $ 5,000 $ 80% $ 2,001 $ 5,001 $ 10,000 $ 2,000 + 90% $ 5,001 $ 10,001 $ 20,000 $ 5,001 + 95% $ 10,001 $ 20,001 $ 10,001 + 98% $ 20,001

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endtable

Cross-References

For more information, see:

1. PCS 1002–02: “Disposal of Equipment to Surplus Property”
2. PCS 1002–03: “Redistribution of Equipment to University Departments”
3. PCS 1002–04: “Spot Sales and Scrap Sales”
4. PCS 1002–06: “University Employee Purchases”
5. PCS 1002–07: “Temporary Warehouse Storage”
6. PCS 1002–08: “Sponsor-Acquired, ASU-Titled Equipment”

   and

7. PCS 1002–09: “Off-Site Surplus Property Auction Sales.”

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